Question: You are given the following partial table 11 Yew Avgr IP Avy IP 1 2.500 2500 1 000 1 000 3.500 3.500 2 2500 2000
You are given the following partial table 11 Yew Avgr IP Avy IP 1 2.500 2500 1 000 1 000 3.500 3.500 2 2500 2000 4500 5.500 3 2500 2600 4 2 500 5000 3200 5.700 5 2500 2500 8200 6 2500 2500 4400 3.900 6400 6.900 7 2500 3200 5.700 Now assume that the Liquidity Preference theory is correct (versus the data for the Pure Expectations theory above), and the Maturity Risk Premium can be defined as (0.16%)(-1), wheret is the number of years until maturity, Given this information determine how much $42.000, to be deposited at the beginning of Year 3, and held over Years 3, 4, 5 and 6 (4 years), would be worth at the end of Year 6 $56.781.61 $58,133.55 $60.837.44 $59.485.50 $55.429.67
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